Changing Pattern of India's Energy Profile: An Input-Output Analysis of Linkages
28 Pages Posted: 21 Dec 2015
Date Written: 2013
This paper highlights the increasing significance of energy in the Indian economy. The analysis is based on changing dynamics of the supply-and-use relationships among various sectors of the economy. It is observed that energy is an increasingly important input to Indian manufacturing. Since energy is used both as an input as well as for final consumption as a fuel or power, its linkages with the overall economy attain special significance for a growing economy. Over the period, specific energy sub-sectors have intensified their relationship as an input to the economy. Similarly, some energy sub-sectors have maintained a strong relationship with the overall economy as they induce output requirements from other sectors. Thus, the sector calls for policy attention in terms of addressing issues related to raw material availability and adequate infrastructure such as ports, pipelines and transmission. In addition, technology improvement can help to address the impediments on capacity utilization and energy efficiency of the using sectors.
Keywords: Energy, linkages, backward linkages, forward linkages, multiplier product matrix, India
JEL Classification: C67, D57, Q4
Suggested Citation: Suggested Citation